Chicago Partner Michael Renetzky, Co-Chair of the Firm's Corporate and Transactional Department, examined the Department of Labor’s new FAQs after it was announced that Secretary of Labor Alexander Acosta has decided to move forward with the fiduciary rule’s June 9th implementation date, noting: “The department was making an effort to calm some fears in the industry about the rule.”
Renetzky said seeking to have clients sign a full best interest contract (BIC) to cover the full fiduciary duty rule seems premature and he advises to wait on implementing parts of the rule that aren’t necessary yet. “Things can change. Wait 2-3 months and we should have a better picture of the fate of this rule,” says Renetzky. In the meantime, Renetzky says to “take a fresh look at how you would implement procedures to comply with the impartial conduct standards. They can be unclear, especially in what is considered to be reasonable compensation.”
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